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Buy dips on ICE and sell rallies on NYMEX

Published Tuesday, March 31st, 2015

There has been no change in the technical picture since Friday. ICE is still bullish and NYMEX is still bearish. The former hit its upside target on Friday whilst the latter its downside objective on Friday and once more yesterday. Since these levels have not been closed above/below it is currently recommended to be flat on both contracts. A close over the resistance on ICE is a buy just like dips to buyable short-term M/A supports. A close below support is a sell on NYMEX just like rallies to sellable resistances. These resistances are the daily short-term M/As.

May ICE: The resistance in question is the 100-day contract M/A, currently at 47.31. A close over it is a buy. In that case the market should target the 49.45 range resistance. This is the daily high on the May contract on February 26. On the downside keep an eye on the 34-day M/A that is at 45.94. On a break and close below this level we should be heading towards the 8-day M/A support area that is at 45.45. A dip back there is a buy and further weakness down to the 13-day M/A at around 44.05 is also buy.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.